WiMAX Could Affect Satellite Radio

[Grasshopper]

The potential for mobile WiMAX services to succeed is difficult to argue against. And, if consumers adopt the technology like many are predicting, satellite radio could be headed for battle against yet another competitor.

According to a recent study, mobile WiMAX services will enable consumers to use wireless internet radio devices in their cars, meaning satellite radio could take a hit. The research, published by Bridge Ratings, says not only is satellite radio at risk, but terrestrial radio and other handheld devices are as well.

The study suggests that after nine years of deployment, wireless internet radio services in the car could lessen average satellite radio listening rates from 21 hours per week today to around 14 hours. Terrestrial radio listening rates could also suffer, the study said, by dropping its average listening rates from about 19.5 hours per week to less than 14 hours.

Bridge Ratings officials said that although no manufacturer has unveiled any plans to produce a mobile WiMAX internet radio device for a vehicle, it is a possibility that one could hit the market within a couple years.